Tea price dips at Kochi auctions on slack demand, higher arrivals

Increased arrivals and weak overseas demand have pushed prices for traditional paper at auctions in Kochi this week with average price realization falling by Rs 3/kg.

Traders attributed lower export demand and improved Sri Lankan tea production, making it easier for some buyers to source tea from the island nation, to this trend. This, along with fulfilling export orders for Tunisian and Iraqi buyers this season, has affected shipments. Exports to the CIS countries and West Asian countries also fell, while buyers from outside the country worked selectively.

difficulties

Referring to the newly introduced amendments to the auction system, the dealers said that small buyers had experienced some difficulties in bidding.

Auctioneers at Forbes, Ewart and Figgis said demand was fair at 21 sold with 64 per cent of the 382,565 kilos offered in the traditional category sold. The market was $3 to $5 lower and the drop in price increased to $5 to $10 as selling progressed and there were also a lot of pullbacks. Medium and thick whole papers were $5-10 lower and saw heavy pulls in slow bids. Minor brokers from all sectors have seen weak features and lost value.

CTC leaves hardly stayed still and tended to loosen. CTC dust prices have been declining with the good liquefied tea market ruling steadily to constant and sometimes more expensive. The rest was erratic and down, and saw a lot of dropouts. Of the 8,54,774 kg offered, 60 percent was absorbed by the mixers. There was fair demand from loose tea merchants and buyers in rural areas. Average price realization decreased by Rs 2 at INR 133.96 per kg. Orthodox dust was fixed to more expensive at ₹1 -2 and the exporters absorbed a small amount of offerings of 3500 kg.